Problem 18-11 Your answer is partially correct. Try again. On July 1, 2020, Skysong Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,890,000. On July 1, Skysong estimated that it would take between 2 and 3 years to complete the building. On December 31, 2022, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2020, 2021, and 2022. Contract costs incurred to date Estimated costs to complete the contract Billings to Gumbel At 12/31/20 $286,900 1,223,100 300,000 At 12/31/21 $1,154,200 835,800 1,090,000 At 12/31/22 $2,088,600 -0- 1,840,000 (a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2020, 2021, and 2022. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any field blank. If an amount should be deducted then enter the amount using either a negative sign prececeding the number e.g. -45 or parenthesis e.g. (45).) 2020 286900 Costs to date (12/31/20) Estimated Costs to complete 2 Estimated Total Costs 1223100 1510000 Percent Complete 19 Revenue Recognized 359100 Costs Incurred 286900 T Profit/ (Loss) Recognized in 2020 72200 2021 Costs to date (12/31/21) 1154200 Estimated Costs to Complete 835800 Estimated Total Costs 1990000 Contract Price 1890000 x Estimated Costs to Complete V 100000 Total Profit/Loss 58000 Gross Profit Recognized in 2020 72200 Profit/ (Loss) Recognized in 2021 130200 2022 T costs to date (12/31/22) V 2088600 | Estimated Costs to Complete 0 2088600 Estimated Total Costs V 1890000 Total Profit/Loss 19860 1 Total Profit/Loss 19860 Profit/(Loss) Recognized in 2021 72200 x Profit/ (Loss) Recognized in 2022 V 130200 130200 Profit/ (Loss) Recognized in 2022 (b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2020, 2021, and 2022. (Ignore income taxes.) (If answer is 0, please enter O. Do not leave any fields blank. If an amount should be deducted then enter the amount using either a negative sign prececeding the number e.g. -45 or parenthesis e.g. (45).) 2021 X Costs to date (12/31/21) 286900 Contract Price 1890000 Contract Price 1603100 2022 TCosts Incurred 2088600 Contract Price 1890000 IX 1890000 X 2088600 X X Total Profit/ (Loss) on Contract 198600